NZTE Presentation for NZPBC Hernando Banal Trade Commissioner - - - PowerPoint PPT Presentation

NZTE

Hernando Banal Trade Commissioner - Philippines

Presentation for NZPBC

New Zealand Trade and Enterprise

$36

billion

NZTE is New Zealand’s international business development agency. Our role is to help New Zealand businesses grow into international markets.

3,000 Customers

• Crown entity, with a private board
• 550 people (50% offshore)
• 36 international offices
• Purpose: International Growth
• Providing Services in NZ
• Providing Services in market

NZTE Key Facts

NZTE Quick Facts

Profile of NZ Exporters

12,000

Export goods earnings, year to June 2011*

$36

billion

$5

billion

$3

460 260

Number of New Zealand exporters

NZ INC. BUSINESS GROWTH AGENDA

Increase the ratio of exports to GDP to 40% by 2025

5½ -7½% p.a. real export growth

The Target

The Philippines

Hernando Banal

What is the public perception?

Or this?

Why not this one?

Quick Facts

Population: 95M Median Age: 22.5 years old Land Area : 290,000Km2,

7,100 islands

Religion : 90% Christian , 5% Muslim Main Commercial Centres:

• Metro Manila
• Cebu
• Davao

Official Language : ENGLISH

Political History

President Noynoy Aquino (PNoy)

Stable and Resilient Economic Growth

GDP (Q4 2012) 6.8%

GDP (2012) 6.6% GDP (Q1 2013) 7.8% Headline inflation (2012) 3.2% Headline inflation (Jan – May 2013) 3.0%

Continuous Inflow of Overseas Filipino Workers Remittances

• 2012: US$21.39 Billion ( 6.3% higher that 2011

record)

• 2011 OFW remittances crossed the US$20 Billion barrier with

full year record of US$20.12 Billion

• Remittance drew strength from demand for skilled and

professional Filipinos abroad, along with better data capture through banks and financial institutions

www.boi.gov.ph

Business Process Outsourcing – 2012 Stats

7 7 2 K

jobs

US$ 1

3 . 4

billion

www.bpap.org

World Bank (2010) Government Effectiveness Indicator Fitch Ratings Standard & Poor’s

Japan Credit Rating Agency (JCRA) FROM INVESTMENT GRADE TO BB- BBB- BB+ BBB-

Outlook: Stable

BBB

BBB-

Credit Rating Upgrades

www.boi.gov.ph

Rich Talent Pool

Produce over 470,000 college graduates per year across a wide range of disciplines.

• IT/Computer Sciences/Engineering - more than

100,000 college graduates per year

• In the business field - more than 110,000

graduates per year,

• In the medical field - more than 73,000.
• Educated and English Proficient
• Strongly Customer Service Oriented
• Highly Trainable with Fast Learning Curve
• Adaptable to Universal Cultures

www.boi.gov.ph

Strategic Business Location in East ASIA

The country’s location is a critical entry point to over 500 million people in the ASEAN Market and a natural gateway to the East- Asian economies.

• The country

is likewise placed at the crossroads of international shipping and airlines.

• Within Asia, the Philippines

is reachable within 3 to 4 hours by plane. www.boi.gov.ph

GDP Growth in Asia

ASEAN-4 (PHILIPPINES, THAILAND, INDONESIA, MALAYSIA) ALL ACCELERATED ABOVE THEIR 10 YEAR GROWTH TREND.

Here, it’s ENGLISH!

• Product labels
• Legal Documents
• Commercial Documents
• Traffic signs

ASEAN-Australia-New Zealand Free Trade Agreement

Before

2010

2017 2020

Percentage of Tariff Lines duty free 79.8% duty free 84.7% duty free 96.5% duty free 100% duty free

Philippine Exports to New Zealand

ASEAN-Australia-New Zealand Free Trade Agreement

Percentage of Tariff Lines duty free 1.9% duty free 74.1% duty free 89.7% duty free 99.6% duty free

New Zealand Exports to the Philippines

Before

2010

2017 2020

Online Tariff Finder

NZ government website for AANZFTA agreement

http://www.asean.fta.govt.nz/

Useful resource on AANZFTA per country Nifty tariff finder for use by both exporters and importers Allows for the use of key words or tariff codes

http://www.asean.fta.govt.nz/tariff-finder

Asian Development Bank

• ADB Headquarters located in Manila,

with 30 Resident Missions worldwide

• Vision: An Asia and Pacific region free of

poverty

• Strategy 2020 lists down Five Core

Operational Areas: Infrastructure, Environment, Regional Cooperation and Integration, Finance Sector, and Education

• Provides Loan and Technical Assistance

to the Asia and the Pacific region

www.adb.org

NZ Top Consultants for Technical Assistance

www.adb.org

NZ Top Consultants for Loan Projects

www.adb.org

NZ Trade to the Philippines

• Export value : $700M
• 15th Largest Export Market (out of 230 countries)
• 4th Largest export market for Dairy
• 80% Food & Beverage (65% is Dairy products)
• 9% Wood related products
• 4% Services
• (Relatively) a Problem FREE trade partnership
• 2012 Statistics

The Filipino perception of New Zealand

• Milk
• Sheep
• Lord of the Rings / Breath-taking sceneries
• Geothermal Energy
• Geotechnical experts
• Secured payment systems
• It’s a place far far away…

Challenges - set your expectations right and be prepared

• Low awareness between our two economies
• Do your homework – taxation, labour code, registrations, competition
• Red T

apes

• Absence of direct shipping and air services
• Get the right local partner /adviser/consultant
• NZ and PHL consumer markets are not exactly the same
• Security in certain hot spots
• Corruption is a dangerous game
• Government projects

– can be affected by change of administration – must be ready for the long haul

Asian Development Bank – Events

October 2013

ADB- Business Opportunities Seminar - Auckland and Wellington

March 2014

NZ Trade Mission to the ADB, Business Opportunities Fair – Manila, Philippines

NZTE Projects

April 2014

Experience New Zealand/ F&B Trade Fair/East Asia Food Connection – Manila, Philippines

TBC

Renewable Energy Workshop – Manila, Philippines

NZTE Manila Team

Geothermal Workshop 2012 , Makati City

ADB Mission led by Minister Craig Foss , March 2013

Experience NZ 2013 F&B Trade Fair, Glorietta Mall Makati

Experience NZ 2013

Experience NZ 2013